Westinghouse Air Brake Technologies Corporation, commonly referred to as Wabtec Corporation (WAB), announced on Tuesday that it has secured a substantial $248 million contract with Winning Consortium Simandou, a joint enterprise formed by Baowu and Winning. This agreement involves the supply of Evolution Series ES43ACmi locomotives and associated services for their iron ore project located in eastern Guinea.
This contract follows a previous order placed by SimFer, a joint venture with Rio Tinto, elevating the total project value to more than $500 million. This marks one of Wabtec's most significant international locomotive agreements in the past five years.
The ES43ACmi locomotive, a dual-cab, 4,500 horsepower model, is equipped with Wabtec's state-of-the-art Evolution Series engine. It is engineered to deliver outstanding fuel efficiency and consistent performance, even in the extreme, high-temperature conditions found in eastern Guinea. Furthermore, it complies with UIC 3a and U.S. EPA Tier 3 emission standards. Deliveries of these locomotives for the Simandou project are scheduled to commence in 2025.
The 600-kilometer-long TransGuinean Railway is currently under construction to connect the Simandou mine with the Port of Morebaya. Nestled in southeastern Guinea, the Simandou mountain range harbors the world's largest undisturbed reserve of high-grade iron ore. Winning Consortium Simandou is developing blocks #1 and #2 of the Simandou deposit, estimated to contain over 1.8 billion tonnes of reserves.
As of the latest update, WAB's shares are trading at $205.55, reflecting a rise of 0.60% on the New York Stock Exchange.
